Nifty posts strongest 5-day rally in seven months driven by foreign inflows and US political developments

Indian benchmark indices extended their winning streak to a fifth consecutive session, with the Nifty 50 rising to 23,961. The broad-based rally was supported by strong foreign inflows, positive market breadth, and expectations that a divided US government could ease trade and tariff concerns.

The Indian stock market extended its winning streak to a fifth straight session, registering its strongest five-day advance in seven months. The Nifty 50 rose 150 points, or 0.63 per cent, to close at 23,961, marking its first finish above the 200-day exponential moving average of 23,904 since August 13. Meanwhile, the BSE Sensex gained 384 points, or 0.50 per cent, to settle at 77,301. The Nifty has recovered nearly 1,800 points from its recent low of 22,179, rallying more than 5 per cent over the past five sessions.

Market participation broadened significantly during the session. The Nifty Midcap 100 climbed 1.55 per cent, and the Nifty Smallcap 100 advanced 2 per cent. BSE market breadth remained firmly positive, with more than two stocks advancing for every stock that declined. The Bank Nifty added 374 points to close at 55,914.

Hemant Sood, Founder and Managing Director of Findoc Group, noted that the rally has moved beyond a handful of index heavyweights, representing a healthier form of participation. Foreign portfolio investors (FPIs) have been net buyers for three consecutive sessions, purchasing equities worth ₹7,284.03 crore on November 4, while domestic institutional investors sold shares worth ₹3,712.23 crore.

Sentiment was further aided by developments in the US midterm elections, with projections pointing to a divided government in Washington after Democrats regained control of the Senate and appeared set to secure the House as well. Vinod Nair, Head of Research at Geojit Investments, stated that this outcome has raised expectations of a more measured approach to trade and tariff policies, which could support foreign institutional investor flows into emerging markets.

Sectoral performance showed media as the top gainer, surging 5.2 per cent to a fresh 52-week high. Other gainers included realty, up 2.9 per cent; metals, up 2.8 per cent; and FMCG, up 1.5 per cent. Conversely, IT was the sole sectoral loser, declining 1.5 per cent amid concerns over global technology spending and regulatory uncertainty in the United States. BEL, Adani Enterprises, Titan, Jio Financial Services, and Max Healthcare led the gainers, while TCS, HCL Technologies, and Infosys acted as drags.

In the currency and commodity markets, the Indian rupee strengthened for the fourth consecutive session, gaining 10 paise to close at 94.64 against the dollar, supported by a softer dollar index and easing crude oil prices. Gold prices rebounded sharply on short covering.

Domestically, the stronger-than-expected HSBC India Services PMI reading of 55.8 for October added to the positive undertone. Looking ahead, investor focus will remain on the US administration’s stance on West Asia, the Bank of England’s policy decision, and upcoming US jobless claims data.

"This strong five-day market rally reflects renewed confidence among foreign investors and a healthier, broad-based participation across midcap and smallcap segments. For the broader business and startup ecosystem, stability in the public markets and a strengthening rupee create a more favorable environment for capital allocation, liquidity, and future fundraising activities. Entrepreneurs and business leaders should monitor these macroeconomic shifts closely as global trade policies and institutional inflows continue to shape overall market sentiment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes